Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

21.
If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?

A. No adjustment is required in the books of the transferor company

B. Adjustment is required in the books of the transferor company

C. No adjustment is required in the books of the transferee company

D. None of the above

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22.
A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They agreed to take D into partnership and gave him $$\frac{1}{8}$$ share. What will be their new profit sharing ratio?

A. 4 : 3 : 2 : 1

B. 28 : 21 : 14 : 9

C. 28 : 21 : 14 : 8

D. 4 : 1 : 2 : 1

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23.
In a business net assets on 1^st January are Rs. 6,000 and on 31^st January are Rs. 7,500. If the withdrawals by the owner during January are Rs. 1,000 the net income for January is:

A. Rs. 1,500

B. Rs. 2,500

C. Rs. 500

D. None of these

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24.
Shares issued to promoters for consideration other than cash is debited to-

A. Promoter's account

B. Goodwill account

C. Preliminary expense account

D. General expense account

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25.
On the death of a partner, the amount received from Joint life policy should be credited to the capital accounts of

A. only continuing partners

B. only deceased partners

C. all the partners

D. none of these

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26.
Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill by capitalisation method will be:

A. Rs. 1,00,000

B. Rs. 1,50,000

C. Rs. 2,00,000

D. Rs. 3,00,000

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27.
Which of the following is true?
i. Balance sheet is alway sprepared from the point of view of the business, but not from the point of view of the owners.
ii. The financial relationship of the business to its owners is shown in the balance sheet.
iii. Balance sheet is always related to a period of time.

A. i and ii

B. ii and iii

C. i and iii

D. i, ii and iii

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28.
The Balance Sheet of a company includes, among other item, 10% Redeemable Preference Share of Rs. 1,60,000 fully paid, share premium Rs. 1,000 and a revenue reserve of Rs. 1,31,000. The company decided to redeem the above shares at a premium of 5% by issue of new shares. If the new issue of shares is to be at a premium of 20%, the minimum amount of new issue will be

A. Rs. 28,800

B. Rs. 32,000

C. Rs. 36,000

D. Rs. 37,000

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29.
"Losses are anticipated and profits are not accounted until realized", is the part of following principle

A. Consistency

B. Comparability

C. Conservatism

D. Disclosure

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30.
In the event of recoupment of short workings by the lessee, the lessor debits

A. Minimum Rent Account

B. Lessee's Account

C. Royalty Reserve Account

D. Profit and Loss Account

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?

Answer & Solution

22. A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They agreed to take D into partnership and gave him $$\frac{1}{8}$$ share. What will be their new profit sharing ratio?

Answer & Solution

23. In a business net assets on 1st January are Rs. 6,000 and on 31st January are Rs. 7,500. If the withdrawals by the owner during January are Rs. 1,000 the net income for January is:

Answer & Solution

24. Shares issued to promoters for consideration other than cash is debited to-

Answer & Solution

25. On the death of a partner, the amount received from Joint life policy should be credited to the capital accounts of

Answer & Solution

26. Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill by capitalisation method will be:

Answer & Solution

Answer & Solution

Answer & Solution

29. "Losses are anticipated and profits are not accounted until realized", is the part of following principle

Answer & Solution

30. In the event of recoupment of short workings by the lessee, the lessor debits

Answer & Solution

Read More Section(Accounting)

21.
If there is mutual indebtedness between the transferor company and the transferee company in business combination, which of the following is correct?

22.
A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They agreed to take D into partnership and gave him $$\frac{1}{8}$$ share. What will be their new profit sharing ratio?

23.
In a business net assets on 1^st January are Rs. 6,000 and on 31^st January are Rs. 7,500. If the withdrawals by the owner during January are Rs. 1,000 the net income for January is:

24.
Shares issued to promoters for consideration other than cash is debited to-

25.
On the death of a partner, the amount received from Joint life policy should be credited to the capital accounts of

26.
Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill by capitalisation method will be:

29.
"Losses are anticipated and profits are not accounted until realized", is the part of following principle

30.
In the event of recoupment of short workings by the lessee, the lessor debits